Pacific MPs demand bold budget reforms amid criticism of cuts and inequality

Pacific MPs are criticising the Coalition Government's upcoming budget, calling for a more progressive approach to addressing urgent issues such as pay equity, child wellbeing, and economic inequality.

Speaking on Pacific Mornings, Labour MP Jenny Salesa expressed deep concern over the budget’s operating allowance, which has been cut from $2.4 billion to $1.3 billion.

“It really shocked all of us in the opposition, we did not expect that they would find that money from making sure that working women actually pay for it,” Salesa says.

Meanwhile, Green MP Teanau Tuiono is advocating for a bold alternative budget that the Green Party recently launched.

“We are the only country that doesn't have a wealth tax, a capital gains tax, or a stamp duty and so this would bring us in line with that. I think it's really important that we sort that out,” Tuiono says.

The proposed budget includes free GP visits, dental care, childcare, and an income guarantee of almost $400 for those unemployed or studying.

Tuiono defends these measures as essential steps towards reducing poverty and promoting fairness. He also discusses the newly proposed private jet tax, which would charge $5000 per passenger arriving and departing New Zealand.

“If we want people to be able to work in the best ways possible, you need to support them to be able to look after their children, hence making sure that early childhood education is free.

“There are things that we can do, there are some things that we need to do, and this is what our budget is about.”

Watch Jenny Salesa's full interview here

Finance Minister Nicola Willis criticised the Greens’ alternative budget, labelling it as “nothing short of magical thinking”.

Willis pointed to the billions of dollars allocated to unemployment benefits while taxing hardworking families.

“The idea that raiding New Zealanders’ incomes will somehow make the country better off is offensive to every New Zealander struggling with the cost of living crisis that Labour and the Greens created. This is truly magical thinking.”

She also highlighted the proposed taxes in the Green budget, including a wealth, trust, and inheritance tax.

Finance Minister Nicola Willis announced the operating allowance for the upcoming Budget will be slashed from $2.4 billion to $1.3 billion. Photo/Nicola Willis Facebook

“While the Greens’ proposals are not grounded in any kind of fiscal reality, their approach is very similar to Labour’s. It’s all about higher taxes, more spending and ballooning debt.”

Tuiono argues that New Zealand is an outlier among OECD countries for not effectively taxing wealth.

“Here's the thing with not taxing wealth, right? Most of that wealth that has been accumulated by the richest people in our country, they don't work for it,” he says.

“So our progressive tax system is not targeting specifically those people that are actually doing work. We need to tax wealth.”

Watch Teanau Tuiono's full interview here

Both Tuiono and Salesa agree that the government's current approach does not adequately address broader social issues, such as truancy, child wellbeing, and public safety.

“There is a wider discussion about the factors that lead to truancy,” Salesa says. “Covid was a factor, but there are also things like poverty, poor health, and other family circumstances.

“In addition to these changes, we also should put preventative measures in place to ensure that our children actually want to attend school.”

Tuiono further critiques the government's priorities, pointing out the increase in military spending.

"Nicola Willis says that there's no lollies in the lolly jar. Well, probably because Judith Collins got a lot of those lollies and so did David Seymour.”